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UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
 For the transition period from to
 Commission File Number 001-14429
 SKECHERS U.S.A., INC.
 (Exact name of registrant as specified in its charter)
 Delaware
    
    95-4376145(State or Other Jurisdiction of Incorporation or Organization)
    
    (I.R.S. Employer Identification No.)228 Manhattan Beach Blvd.Manhattan Beach, California
    
    90266(Address of Principal Executive Office)
    
    (Zip Code)
 (310) 318-3100
(Registrants Telephone Number, Including Area Code)
 þ o
  o þ o
 o þ




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##### Table of Contents



SKECHERS U.S.A., INC. AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
 PART I  FINANCIAL INFORMATIONItem 1.
    
    Condensed Consolidated Financial Statements (Unaudited):Condensed Consolidated Balance Sheets
    
    
    3Condensed Consolidated Statements of Earnings and Comprehensive Income
    
    
    4Condensed Consolidated Statements of Cash Flows
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4.
    
    Controls and Procedures
    
    
    24PART II  OTHER INFORMATIONItem 1.
    
    Legal Proceedings
    
    
    25Item 1A.
    
    Risk Factors
    
    
    26Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    27Item 6.
    
    Exhibits
    
    
    27Signatures
    
    
    28EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
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PART I  FINANCIAL INFORMATION
 
 ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 KECHERS U.S.A., INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 (In thousands)
 June 30,
    
    
    December 31,2007
    
    
    2006ASSETSCurrent Assets:Cash and cash equivalents
    
    $
    116,309
    
    
    $
    160,485Short-term investments
    
    
    102,250
    
    
    
    60,000Trade accounts receivable, less allowances of $12,378 in 2007 and $10,558 in 2006
    
    
    226,274
    
    
    
    177,740Other receivables
    
    
    8,129
    
    
    
    8,035Total receivables
    
    
    234,403
    
    
    
    185,775Inventories
    
    
    204,707
    
    
    
    200,877Prepaid expenses and other current assets
    
    
    17,483
    
    
    
    15,321Deferred tax assets
    
    
    9,490
    
    
    
    9,490Total current assets
    
    
    684,642
    
    
    
    631,948Property and equipment, at cost, less accumulated depreciation and amortization
    
    
    94,290
    
    
    
    87,645Intangible assets, less accumulated amortization
    
    
    312
    
    
    
    633Deferred tax assets
    
    
    11,984
    
    
    
    11,984Other assets, at cost
    
    
    4,889
    
    
    
    4,843TOTAL ASSETS
    
    $
    796,117
    
    
    $
    737,053LIABILITIES AND STOCKHOLDERS EQUITYCurrent Liabilities:Current installments of long-term borrowings
    
    
    393
    
    
    
    576Accounts payable
    
    
    178,145
    
    
    
    161,150Accrued expenses
    
    
    17,819
    
    
    
    19,435Total current liabilities
    
    
    196,357
    
    
    
    181,1614.50% convertible subordinated notes
    
    
    
    
    
    
    89,969Long-term borrowings, excluding current installments
    
    
    16,658
    
    
    
    16,836Total liabilities
    
    
    213,015
    
    
    
    287,966Commitments and contingenciesStockholders equity:Preferred Stock, $.001 par value; 10,000 authorized; none issued and outstanding
    
    
    
    
    
    
    Class A Common Stock, $.001 par value; 100,000 shares authorized; 32,763 and 28,103
shares issued and outstanding at June 30, 2007 and December 31, 2006, respectively
    
    
    33
    
    
    
    28Class B Common Stock, $.001 par value; 60,000 shares authorized; 12,952 and 13,768
shares issued and outstanding at June 30, 2007 and December 31, 2006,respectively
    
    
    13
    
    
    
    14Additional paid-in capital
    
    
    255,826
    
    
    
    156,374Accumulated other comprehensive income
    
    
    10,298
    
    
    
    11,200Retained earnings
    
    
    316,932
    
    
    
    281,471Total stockholders equity
    
    
    583,102
    
    
    
    449,087TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    796,117
    
    
    $
    737,053
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SKECHERS U.S.A., INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
 (Unaudited)
 (In thousands, except per share data)
 Three-Months Ended June 30,
    
    
    Six-Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    352,211
    
    
    $
    292,183
    
    
    $
    697,107
    
    
    $
    569,748Cost of sales
    
    
    200,183
    
    
    
    161,448
    
    
    
    396,040
    
    
    
    320,638Gross profit
    
    
    152,028
    
    
    
    130,735
    
    
    
    301,067
    
    
    
    249,110Royalty income
    
    
    1,193
    
    
    
    559
    
    
    
    2,394
    
    
    
    1,553153,221
    
    
    
    131,294
    
    
    
    303,461
    
    
    
    250,663Operating expenses:Selling
    
    
    40,950
    
    
    
    31,061
    
    
    
    67,791
    
    
    
    51,248General and administrative
    
    
    90,473
    
    
    
    72,803
    
    
    
    176,457
    
    
    
    144,736131,423
    
    
    
    103,864
    
    
    
    244,248
    
    
    
    195,984Earnings from operations
    
    
    21,798
    
    
    
    27,430
    
    
    
    59,213
    
    
    
    54,679Other income (expense):Interest income
    
    
    2,446
    
    
    
    2,299
    
    
    
    4,884
    
    
    
    4,070Interest expense
    
    
    (1,160
    )
    
    
    (2,384
    )
    
    
    (2,751
    )
    
    
    (4,614
    )Other, net
    
    
    (147
    )
    
    
    53
    
    
    
    (169
    )
    
    
    2591,139
    
    
    
    (32
    )
    
    
    1,964
    
    
    
    (285
    )Earnings before income taxes
    
    
    22,937
    
    
    
    27,398
    
    
    
    61,177
    
    
    
    54,394Income tax expense
    
    
    7,989
    
    
    
    9,782
    
    
    
    22,329
    
    
    
    20,180Net earnings
    
    $
    14,948
    
    
    $
    17,616
    
    
    $
    38,848
    
    
    $
    34,214Net earnings per share:Basic
    
    $
    0.33
    
    
    $
    0.43
    
    
    $
    0.87
    
    
    $
    0.84Diluted
    
    $
    0.32
    
    
    $
    0.40
    
    
    $
    0.84
    
    
    $
    0.77Weighted average shares:Basic
    
    
    45,576
    
    
    
    41,077
    
    
    
    44,777
    
    
    
    40,687Diluted
    
    
    46,808
    
    
    
    46,146
    
    
    
    46,809
    
    
    
    45,802Comprehensive income:Net earnings
    
    $
    14,948
    
    
    $
    17,616
    
    
    $
    38,848
    
    
    $
    34,214Foreign currency translation adjustment, net of tax
    
    
    1,861
    
    
    
    2,366
    
    
    
    (902
    )
    
    
    2,930Total comprehensive income
    
    $
    16,809
    
    
    $
    19,982
    
    
    $
    37,946
    
    
    $
    37,144
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SKECHERS U.S.A., INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 (In thousands)
 Six-Months Ended June 30,2007
    
    
    2006Cash flows from operating activities:Net earnings
    
    $
    38,848
    
    
    $
    34,214Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization of property and equipment
    
    
    8,185
    
    
    
    8,328Amortization of deferred financing costs
    
    
    95
    
    
    
    383Amortization of intangible assets
    
    
    203
    
    
    
    253Provision for bad debts and returns
    
    
    2,709
    
    
    
    4,881Tax benefits from stock-based compensation
    
    
    3,110
    
    
    
    2,905Non cash stock compensation
    
    
    651
    
    
    
    1,177Loss on disposal of equipment
    
    
    55
    
    
    
    24(Increase) decrease in assets:Receivables
    
    
    (50,230
    )
    
    
    (57,369
    )Inventories
    
    
    (3,717
    )
    
    
    (20,013
    )Prepaid expenses and other current assets
    
    
    (2,127
    )
    
    
    (5,759
    )Other assets
    
    
    (46
    )
    
    
    685Increase (decrease) in liabilities:Accounts payable
    
    
    14,911
    
    
    
    39,553Accrued expenses
    
    
    (5,007
    )
    
    
    (8,348
    )Net cash provided by operating activities
    
    
    7,640
    
    
    
    914Cash flows used in investing activities:Capital expenditures
    
    
    (17,301
    )
    
    
    (9,992
    )Purchases of short-term investments
    
    
    (122,125
    )
    
    
    Maturities of short-term investments
    
    
    79,875
    
    
    
    Net cash used in investing activities
    
    
    (59,551
    )
    
    
    (9,992
    )Cash flows from financing activities:Net proceeds from the issuances of stock through employee stock purchase plan and
the exercise of stock options
    
    
    6,662
    
    
    
    13,176Payments on long-term debt
    
    
    (362
    )
    
    
    (530
    )Excess tax benefits from stock-based compensation
    
    
    287
    
    
    
    2,929Net cash provided by financing activities
    
    
    6,587
    
    
    
    15,575Net increase (decrease) in cash and cash equivalents
    
    
    (45,324
    )
    
    
    6,497Effect of exchange rates on cash and cash equivalents
    
    
    1,148
    
    
    
    998Cash and cash equivalents at beginning of the period
    
    
    160,485
    
    
    
    197,007Cash and cash equivalents at end of the period
    
    $
    116,309
    
    
    $
    204,502Supplemental disclosures of cash flow information:Interest paid
    
    $
    2,498
    
    
    $
    4,377Income taxes paid
    
    
    24,958
    
    
    
    23,854
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SKECHERS U.S.A., INC. AND SUBSIDIARIES
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Unaudited)
 (1) GENERAL
 Basis of Presentation
   Use of Estimates
  (2) SHORT-TERM INVESTMENTS
  (3) REVENUE RECOGNITION
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(4) OTHER COMPREHENSIVE INCOME
  (5) STOCK COMPENSATION
   WEIGHTED
    
    WEIGHTED AVERAGE
    
    AGGREGATEAVERAGE
    
    REMAINING
    
    INTRINSICSHARES
    
    EXERCISE PRICE
    
    CONTRACTUAL TERM
    
    VALUEOutstanding at December 31, 2006
    
    
    2,485,585
    
    
    $
    11.74Granted
    
    
    
    
    
    
    Exercised
    
    
    (416,897
    )
    
    
    12.81Forfeited
    
    
    (20,265
    )
    
    
    17.62Outstanding at June 30, 2007
    
    
    2,048,423
    
    
    
    11.46
    
    
    4.4 years
    
    $
    36,332,965Exercisable at June 30, 2007
    
    
    2,027,798
    
    
    
    11.45
    
    
    4.3 years
    
    $
    36,002,544
  WEIGHTED AVERAGEGRANT-DATE FAIRSHARES
    
    VALUENonvested at December 31, 2006
    
    
    17,333
    
    
    $
    16.38Granted
    
    
    
    
    
    
    Vested
    
    
    (4,666
    )
    
    
    17.00Nonvested at June 30, 2007
    
    
    12,667
    
    
    
    16.16
 (6) EARNINGS PER SHARE
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Three-Months Ended June 30,
    
    Six-Months Ended June 30,Basic earnings per share
    
    2007
    
    2006
    
    2007
    
    2006Net earnings
    
    $
    14,948
    
    
    $
    17,616
    
    
    $
    38,848
    
    
    $
    34,214Weighted average common shares outstanding
    
    
    45,576
    
    
    
    41,077
    
    
    
    44,777
    
    
    
    40,687Basic earnings per share
    
    $
    0.33
    
    
    $
    0.43
    
    
    $
    0.87
    
    
    $
    0.84
  Three-Months Ended June 30,
    
    
    Six-Months Ended June 30,Diluted earnings per share
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net earnings
    
    $
    14,948
    
    
    $
    17,616
    
    
    $
    38,848
    
    
    $
    34,214After tax effect of interest expense on 4.50%
convertible subordinated notes
    
    
    
    
    
    
    651
    
    
    
    357
    
    
    
    1,274Earnings for purposes of computing diluted
earnings per share
    
    $
    14,948
    
    
    $
    18,267
    
    
    $
    39,205
    
    
    $
    35,488Weighted average common shares outstanding
    
    
    45,576
    
    
    
    41,077
    
    
    
    44,777
    
    
    
    40,687Dilutive effect of stock options
    
    
    1,232
    
    
    
    1,603
    
    
    
    1,307
    
    
    
    1,649Weighted average shares to be issued assuming
conversion of 4.50% convertible subordinated
notes
    
    
    
    
    
    
    3,466
    
    
    
    725
    
    
    
    3,466Weighted average common shares outstanding
    
    
    46,808
    
    
    
    46,146
    
    
    
    46,809
    
    
    
    45,802Diluted earnings per share
    
    $
    0.32
    
    
    $
    0.40
    
    
    $
    0.84
    
    
    $
    0.77
  (7) INCOME TAXES
  Accounting for Uncertainty in Income Taxes  an interpretation of FASB Statement
109
 8




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(8) LINE OF CREDIT
  (9) LITIGATION
  9




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(10) STOCKHOLDERS EQUITY
  (11) SEGMENT AND GEOGRAPHIC REPORTING INFORMATION
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net SalesDomestic wholesale
    
    $
    219,751
    
    
    $
    195,459
    
    
    $
    432,919
    
    
    $
    374,296International wholesale
    
    
    59,774
    
    
    
    36,844
    
    
    
    131,331
    
    
    
    85,225Retail
    
    
    68,612
    
    
    
    57,079
    
    
    
    125,397
    
    
    
    104,949E-commerce
    
    
    4,074
    
    
    
    2,801
    
    
    
    7,460
    
    
    
    5,278Total
    
    $
    352,211
    
    
    $
    292,183
    
    
    $
    697,107
    
    
    $
    569,748
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Gross ProfitDomestic wholesale
    
    $
    85,209
    
    
    $
    78,977
    
    
    $
    170,425
    
    
    $
    147,844International wholesale
    
    
    21,672
    
    
    
    13,126
    
    
    
    48,893
    
    
    
    31,894Retail
    
    
    42,952
    
    
    
    37,187
    
    
    
    77,835
    
    
    
    66,737E-commerce
    
    
    2,195
    
    
    
    1,445
    
    
    
    3,914
    
    
    
    2,635Total
    
    $
    152,028
    
    
    $
    130,735
    
    
    $
    301,067
    
    
    $
    249,110
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June 30, 2007
    
    
    December 31, 2006Identifiable AssetsDomestic wholesale
    
    $
    599,471
    
    
    $
    563,956International wholesale
    
    
    125,065
    
    
    
    108,210Retail
    
    
    71,406
    
    
    
    64,634E-commerce
    
    
    175
    
    
    
    253Total
    
    $
    796,117
    
    
    $
    737,053
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Additions to Property and EquipmentDomestic wholesale
    
    $
    1,917
    
    
    $
    4,385
    
    
    $
    7,711
    
    
    $
    6,705International wholesale
    
    
    568
    
    
    
    334
    
    
    
    733
    
    
    
    429Retail
    
    
    5,760
    
    
    
    1,755
    
    
    
    8,857
    
    
    
    2,858Total
    
    $
    8,245
    
    
    $
    6,474
    
    
    $
    17,301
    
    
    $
    9,992
   Three Months Ended June 30,
    
    
    Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net Sales (1)United States
    
    $
    286,112
    
    
    $
    250,203
    
    
    $
    555,166
    
    
    $
    476,109Canada
    
    
    9,604
    
    
    
    5,994
    
    
    
    18,786
    
    
    
    12,077Other International (2)
    
    
    56,495
    
    
    
    35,986
    
    
    
    123,155
    
    
    
    81,562Total
    
    $
    352,211
    
    
    $
    292,183
    
    
    $
    697,107
    
    
    $
    569,748
 June 30, 2007
    
    
    December 31, 2006Long-Lived AssetsUnited States
    
    $
    91,604
    
    
    $
    81,161Canada
    
    
    534
    
    
    
    764Other International (2)
    
    
    2,152
    
    
    
    5,720Total
    
    $
    94,290
    
    
    $
    87,645
 
 (1)
    
    The Company has subsidiaries in Canada, United Kingdom, Germany, France, Spain, Italy,
Netherlands, and Brazil that generate net sales within those respective countries and in some
cases the neighboring regions. The Company also has a subsidiary in Switzerland that generates
net sales to that region in addition to net sales to our distributors located in numerous
non-European countries. Net sales are attributable to geographic regions based on the location
of the Company subsidiary.(2)
    
    Other international consists of Switzerland, United Kingdom, Germany, France, Spain, Italy,
Netherlands, and Brazil. (12) BUSINESS AND CREDIT CONCENTRATIONS
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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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Three-Months Ended June 30,2007
    
    2006Percentage of revenues by segmentDomestic wholesale
    
    
    62.4
    %
    
    
    66.9
    %International wholesale
    
    
    17.0
    %
    
    
    12.6
    %Retail
    
    
    19.5
    %
    
    
    19.5
    %E-commerce
    
    
    1.1
    %
    
    
    1.0
    %Total
    
    
    100
    %
    
    
    100
    %
    Three-Months Ended June 30,
    
    
    Six-Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    352,211
    
    
    
    100.0
    %
    
    $
    292,183
    
    
    
    100.0
    %
    
    $
    697,107
    
    
    
    100.0
    %
    
    $
    569,748
    
    
    
    100.0
    %Cost of sales
    
    
    200,183
    
    
    
    56.8
    
    
    
    161,448
    
    
    
    55.3
    
    
    
    396,040
    
    
    
    56.8
    
    
    
    320,638
    
    
    
    56.3Gross profit
    
    
    152,028
    
    
    
    43.2
    
    
    
    130,735
    
    
    
    44.7
    
    
    
    301,067
    
    
    
    43.2
    
    
    
    249,110
    
    
    
    43.7Royalty income
    
    
    1,193
    
    
    
    0.3
    
    
    
    559
    
    
    
    0.2
    
    
    
    2,394
    
    
    
    0.3
    
    
    
    1,553
    
    
    
    0.3153,221
    
    
    
    43.5
    
    
    
    131,294
    
    
    
    44.9
    
    
    
    303,461
    
    
    
    43.5
    
    
    
    250,663
    
    
    
    44.0Operating expenses:Selling
    
    
    40,950
    
    
    
    11.6
    
    
    
    31,061
    
    
    
    10.6
    
    
    
    67,791
    
    
    
    9.7
    
    
    
    51,248
    
    
    
    9.0General and administrative
    
    
    90,473
    
    
    
    25.7
    
    
    
    72,803
    
    
    
    24.9
    
    
    
    176,457
    
    
    
    25.3
    
    
    
    144,736
    
    
    
    25.4131,423
    
    
    
    37.3
    
    
    
    103,864
    
    
    
    35.5
    
    
    
    244,248
    
    
    
    35.0
    
    
    
    195,984
    
    
    
    34.4Earnings from operations
    
    
    21,798
    
    
    
    6.2
    
    
    
    27,430
    
    
    
    9.4
    
    
    
    59,213
    
    
    
    8.5
    
    
    
    54,679
    
    
    
    9.6Interest income, net
    
    
    1,286
    
    
    
    0.3
    
    
    
    (85
    )
    
    
    
    
    
    
    2,133
    
    
    
    0.3
    
    
    
    (544
    )
    
    
    (0.1
    )Other, net
    
    
    (147
    )
    
    
    
    
    
    
    53
    
    
    
    
    
    
    
    (169
    )
    
    
    
    
    
    
    259
    
    
    
    Earnings before income taxes
    
    
    22,937
    
    
    
    6.5
    
    
    
    27,398
    
    
    
    9.4
    
    
    
    61,177
    
    
    
    8.8
    
    
    
    54,394
    
    
    
    9.5Income taxes
    
    
    7,989
    
    
    
    2.3
    
    
    
    9,782
    
    
    
    3.4
    
    
    
    22,329
    
    
    
    3.2
    
    
    
    20,180
    
    
    
    3.5Net earnings
    
    $
    14,948
    
    
    
    4.2
    %
    
    $
    17,616
    
    
    
    6.0
    %
    
    $
    38,848
    
    
    
    5.6
    %
    
    $
    34,214
    
    
    
    6.0
    %
 15




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Net sales
     Gross profit
  16




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##### Table of Contents



Licensing
  Selling expenses
   General and administrative expenses
  17




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##### Table of Contents



Interest income
  Interest expense
  Income taxes
   Net sales
  18




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##### Table of Contents



Gross profit
    19




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##### Table of Contents



Licensing
  Selling expenses
  General and administrative expenses
  Interest income
  Interest expense
  Income taxes
  20




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21




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Accounting for Uncertainty in Income
Taxes Accounting for Income Taxes
  The Fair Value Option for Financial Assets and Financial Liabilities, Including
an amendment of FASB Statement No. 115
 22




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##### Table of Contents



Fair Value Measurements
        23




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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   Interest rate fluctuations
 Foreign exchange rate fluctuations
  
 ITEM 4. CONTROLS AND PROCEDURES
  24




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  25




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ITEM 1A. RISK FACTORS
  We Depend Upon A Relatively Small Group Of Customers For A Large Portion Of Our Sales.
  We Rely On Independent Contract Manufacturers And, As A Result, Are Exposed To Potential
Disruptions In Product Supply.
   One Principal Stockholder Is Able To Control Substantially All Matters Requiring A Vote Of Our
Stockholders And His Interests May Differ From The Interests Of Our Other Stockholders.
  26




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##### Table of Contents



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
   Proposal
    
    Votes For
    
    Against/Withheld
    
    AbstentionsProposal No. 1 Election of Director NomineesMichael Greenberg
    
    
    145,875,397
    
    
    
    14,042,090
    
    
    
    David Weinberg
    
    
    145,906,141
    
    
    
    14,011,336
    
    
    
    Jeffrey Greenberg
    
    
    145,888,700
    
    
    
    14,028,787
    
    
    
    Proposal No. 2 Approval of 2007 Annual Incentive Compensation Plan
    
    
    140,741,907
    
    
    
    14,399,701
    
    
    
    18,540Proposal No. 3 Approval of 2008 Employee Stock Purchase Plan
    
    
    149,814,834
    
    
    
    5,329,056
    
    
    
    16,258
  
 ITEM 6. EXHIBITS
 ExhibitNumber
    
    Description31.1
    
    Certification of the Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of the Chief Financial Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of the Chief Executive Officer and the Chief Financial
Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ***
 
 ***
    
    In accordance with Item 601(b)(32)(ii) of Regulation S-K, this exhibit shall not be deemed
filed for the purposes of Section 18 of the Exchange Act or otherwise subject to the
liability of that section, nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act. 27




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SIGNATURES
  Date: August 9, 2007
    SKECHERS U.S.A., INC.By:
    /s/ FREDERICK H. SCHNEIDERFrederick H. SchneiderChief Financial Officer
(Principal Financial and Accounting Officer) 28